The global crypto market capitalization shrunk by another 7% over the past day to drop under the crucial $1 trillion mark. It now stands at $996.2 billion. However, experts suggest that there is more pain ahead for investors.
Crypto market to dip more?
According to famous crypto analyst Willy Woo, past bottoms coincide with short term holders which have a lower cost basis compared to the long term investors. However, he suggests that the crypto market is close to that point but still not there yet.
He added that back in 2015 crypto market saw a final capitulation in the same area where 2019 went to the bottom.
Meanwhile, Woo suggested that the crypto market has not felt the same pain compared to previous years. He highlighted that the market reached only 52% of coins being underwater till now. However, the last recorded bottoms were 61%, 64% and 57%.
He mentioned that history doesn’t need to repeat in this case. The future hedging available has not picked up the On-chain till now.
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However, Woo hints that one of the signals he is watching before rotation capital turns back in. The supply in profit trend line break has broken in all of the prior bear crypto market bottoms.
CPI data affected the market?
Further, he added that in order to quantify the accumulation as coins are moving away from sellers to urgent buyers. As per the data, the crypto market hasn’t reached the levels of accumulation just like prior bottoms.
After the announcement of the Consumer Price Index data, Bitcoin prices have dropped by around 10%. BTC is trading at an average price of $20,249, at the press time. Bitcoins 24 hour trading volume has plunged by 17% to stand at $40.7 billion.
The CPI data didn’t prove to be good for the crypto market. It stands at 8.3% on YoY inflation. However, it is above the expected 8.1%. While the core data is recorded worst than expected.
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